2024 (8) TMI 216 - AT - Customs

Seeking waiver of redemption fine and reduction of penalty imposed - whether redemption fine can be imposed in case the goods are allowed for re-export or not? - HELD THAT - In the case of HCL HEWLETT PACKARD LTD. VERSUS COLLECTOR OF CUSTOMS, DELHI 1997 (1) TMI 218 - CEGAT, NEW DELHI , this tribunal held that in case of re-export of goods, the adjudicating authorities do not have power to impose any redemption fine. As in this case the goods were allowed for re-export on payment of redemption fine, no redemption fine is imposable on the appellant. Therefore, redemption fine imposed on the appellant is set aside. Penalty - HELD THAT - The penalty imposed on the appellant is also on higher side and hence, the same is also reduced to Rs.1,00,000/-. Appeal disposed off.

Summary

Issues:
Appeal against waiver of redemption fine and reduction of penalty.

Analysis:
The case involved an appeal seeking waiver of redemption fine and reduction of penalty imposed on the appellant. The appellant filed a Bill of Entry for clearance of Lead Scrap "Radio" with a declared value. The goods were examined, revealing a mix of lead scrap and used shells/cartridges, violating import restrictions. The impugned order held the goods liable for confiscation but allowed re-export on payment of a redemption fine and imposed a penalty. The appellant contested for waiver of redemption fine and reduction of penalty. The tribunal noted that the appellant did not dispute re-export and had obtained a Pre-Shipment Inspection Certificate. The issue considered was whether redemption fine could be imposed in case of re-export. Citing precedents, the tribunal held that in cases of re-export, adjudicating authorities lack power to impose redemption fines. The tribunal also reduced the penalty imposed on the appellant. Consequently, the redemption fine was set aside, and the penalty reduced to Rs.1,00,000. The appeal was disposed of accordingly.